How to Know You're Spending Too Much for Auto Insurance in West Paterson

Scraping up a payment for overpriced auto insurance can take a big chunk out of your savings account and put the squeeze on your family's finances. Doing a price comparison is a smart way to tighten up your finances.

Companies like State Farm, Allstate, GEICO and Progressive increase brand awareness with advertising and it is difficult to sift through the bull and effectively compare rates to find the best deal.

If you have car insurance now, you stand a good chance to be able to lower your premiums substantially using this information. Finding affordable coverage in West Paterson is easy if you know what you're doing. But New Jersey drivers do need to know how insurance companies sell online and apply this information to your search.

Policy discounts you shouldn't miss

Insurance can cost an arm and a leg, but you may find discounts that you may not know about. Some discounts apply automatically when you complete an application, but less common discounts must be manually applied before they will apply.

Multiple Cars - Buying insurance for all your vehicles on one policy may reduce the rate for each vehicle.
Paperless Signup - Certain companies will discount your bill up to fifty bucks for buying a policy and signing up digitally online.
Clubs and Organizations - Participating in a civic or occupational organization could qualify you for a break when buying auto insurance.
Pay Now and Pay Less - If you pay your bill all at once instead of monthly or quarterly installments you can actually save on your bill.
Anti-theft Discount - Anti-theft and alarm systems help deter theft and will save you 10% or more.
Drivers Ed for Students - Make teen driver coverage more affordable by requiring them to enroll in driver's education if offered at their school.
Government Employees - Active or retired federal employment can save as much as 8% depending on your company.
Discount for New Cars - Adding a new car to your policy is cheaper since new cars are generally safer.
Discount for Life Insurance - Select insurance companies reward you with better rates if you take out a life insurance policy as well.
Accident Waiver - A handful of insurance companies will forgive one accident before your rates go up so long as you haven't had any claims prior to the accident.

Drivers should understand that most of the big mark downs will not be given to all coverage premiums. The majority will only reduce individual premiums such as physical damage coverage or medical payments. So even though they make it sound like it's possible to get free car insurance, companies wouldn't make money that way. But all discounts will reduce the amount you have to pay.

Why some people pay less for insurance in West Paterson

Smart consumers have a good feel for some of the elements that play a part in calculating the price you pay for auto insurance. Having a good understanding of what controls the rates you pay allows you to make educated decisions that could result in lower auto insurance prices.

Don't sacrifice liability coverage - Your policy's liability coverage is the protection if a court rules you are at fault for damages from an accident. It provides for a legal defense starting from day one. Carrying liability coverage is mandatory and cheap as compared to coverage for physical damage, so buy as much as you can afford.
Marriage pays dividends - Having a spouse helps lower the price when buying auto insurance. Having a spouse is viewed as being more mature than a single person and it's proven that married drivers get in fewer accidents.
Car features impact rates - Purchasing a vehicle with an alarm system can help bring down rates. Theft prevention devices such as GM's OnStar, tamper alarm systems and vehicle immobilizers all aid in stopping your car from being stolen.
Discounts for multiple policies - Some companies will award you with lower prices to customers who have multiple policies with them such as combining an auto and homeowners policy. This can amount to anywhere from five to ten percent in most cases. Even though this discount sounds good, you still need to compare other company rates to make sure you are getting the best deal.
An active claims history can cost you - Auto insurance companies in New Jersey provide cheaper rates to people who file claims infrequently. If you file claims often, you can expect either policy cancellation or increased premiums. Auto insurance is designed for the bigger claims that can't be paid out-of-pocket.
Proper usage rating affects rates - The higher the mileage driven in a year's time the more you'll pay to insure your vehicle. Most companies apply a rate based on how the vehicle is used. Vehicles left parked in the garage qualify for better rates compared to those used for work or business. Make sure your auto insurance declarations sheet is rated on the correct usage for each vehicle.

Save $429 a year? Really?

Allstate, GEICO and Progressive consistently run television and radio advertisements. All the companies say the same thing that you'll save big if you change to them. How can each company make almost identical claims?

All companies have a preferred profile for the type of driver that earns them a profit. For example, a profitable customer could possibly be over the age of 50, insures multiple vehicles, and has a short commute. A customer getting a price quote who fits that profile gets the lowest rates and is almost guaranteed to save when they switch companies.

Consumers who don't qualify for the requirements must pay higher rates which usually ends up with the driver buying from a lower-cost company. Company advertisements say "customers that switch" but not "drivers who get quotes" save money. This is how companies can make the claims of big savings.

This illustrates why drivers should quote coverage with many companies. It's impossible to know which insurance companies will fit your personal profile best.

Much more information about auto insurance in New Jersey can be found on the website for the New Jersey Department of Banking and Insurance located here. New Jersey consumers can find out which companies have the most complaints, get help finding coverage, view a list of available companies, and read consumer alerts.

The best insurance company isn't always the cheapest

Budget-conscious auto insurance can be sourced online and with local West Paterson insurance agents, and you should be comparing both to get a complete price analysis. Some insurance providers do not offer you the ability to get quotes online and usually these regional insurance providers provide coverage only through local independent agents.

As you shop your coverage around, it's not a good idea to skimp on coverage in order to save money. In too many instances, drivers have reduced physical damage coverage only to discover later that saving that couple of dollars actually costed them tens of thousands. Your focus should be to buy the best coverage you can find at a price you can afford while not skimping on critical coverages.